Scheduling jobs scheduling personnel or allocating machinery are considerations in: intermediate-range capacity planning long-range capacity planning flexible-range capacity planning short-range capacity planning none of the above Which of the following phrases best describes process focus process? finished goods are usually made to a forecast and stored operators are modestly skilled raw material inventories are high relative to the value of the product high variety low volume low variety high volume • Scenario 1 Big John’s Manufacturing Company currently produces its lead product on an “Old Machine” that has a variable cost of $0.32 per unit and a fixed cost of $75 000. Big John is considering purchasing a “New Machine” that will drop the variable cost to $0.28 per unit but has a fixed cost of $150 000. The crossover point for these two processes is 1 875 000 units. Referring to Scenario 1 above which process is the most cost effective for a volume of 460 025 units? o Cannot determine o New Machine Process o Old Machine Process o Both Processes are equally cost effective at this volume • ________ is actual output as a percent of design capacity. o Effectiveness o Planned Output o Utilization o Throughput o Efficiency • In a process-focus process: o Employees are modestly trained. o Repetitive operations reduce training and do not require changes in job instructions. o There are job instructions for each job. o Work orders and job instructions are few because they are standardized. • Adding facilities or adding long lead time equipment are considerations in: o intermediate-range capacity planning o short-range capacity planning o flexible-range capacity planning o long-range capacity planning o none of the above Scenario 3 A firm is weighing three capacity alternatives: small medium and large job shop. Whatever capacity choice is made the market demand for the firm’s product can be “moderate” or “strong.” The probability of moderate market demand is estimated to be 0.4; the probability of strong market demand is estimated to be 0.6. The anticipated profits are as follows: a. Small job shop: moderate market demand = $24 000; strong market demand = $54 000. b. Medium job shop: moderate market demand = $20 000; strong market demand = $64 000. c. Large job shop: moderate market demand = -$2 000; strong market demand = $96 000. Referring to Scenario 3 above your director wants to increase the probability of moderate market demand to 0.5 without changing any other probabilities (i.e. he wants to keep the probability of strong market demand at 0.6). What should you do? recalculate the EMV for the Large job shop and report the revised (in any) recommended decision recalculate the EMV for the Small job shop and report the revised (in any) recommended decision collectively recalculate all EMVs and report the revised (in any) recommended decision politely inform your director that this is not possible; the sum of all probabilities for market demand needs to equal 1 recalculate the EMV for the Medium job shop and report the revised (in any) recommended decision • A system has five workstations (A B C D and E) connected in sequence with process times of 5 10 4 9 and 8 seconds per unit each respectively. Each workstation contains a single machine. Referring to Scenario 4 above assume Workstation B now contains two machines each of which can process a 1 unit every 10 seconds. Which workstation is now the bottleneck of the system: o Workstation C o Workstation A o Workstation B o Workstation D • Big John’s Manufacturing Company currently produces its lead product on an “Old Machine” that has a variable cost of $0.32 per unit and a fixed cost of $75 000. Big John is considering purchasing a “New Machine” that will drop the variable cost to $0.28 per unit but has a fixed cost of $150 000. The crossover point for these two processes is 1 875 000 units. Referring to Scenario 1 above which process is the most cost effective for a volume of 2 000 500 units? o Both Processes are equally cost effective at this volume o New Machine Process o Cannot determine o Old Machine Process • An executive conference center has the theoretical physical ability to handle a maximum of 1 100 participants. However conference management personnel believe that only 1 000 participants can be handled effectively for most events. The last event resulted in the attendance of 950 participants. Refer to the information in Problem 36. Now assume that the last event resulted in the attendance of 1 000 participants (instead of 950 participants). What is the revised efficiency of the conference facility? o 87.3% o 86.4% o 91.0% o 100% • A capacity expansion decision based on three possible alternatives needs to be made by the VP of Manufacturing. Profit is the primary basis for the final capacity expansion decision. A decision tree has been constructed and three profit-based EMVs have been calculated: • Expansion Decision 1’s EMV = $500 000 • Expansion Decision 2’s EMV = $750 000 • Expansion Decision 3’s EMV = $900 000 Based on the EMV’s above which decision should be made: o Cannot determine o Expansion Decision 2 o Expansion Decision 3 o Expansion Decision 1 • In a process-focus process: o Employees are modestly trained. o Operators are broadly skilled. o Operators are less broadly skilled. o Operators are not broadly skilled. o None of the above. • A _______________ uses symbols to analyze the movement of people or material. o process chart o project network diagram o time function map o flow diagram o service blueprint • A _______________ is a flow diagram with the addition of time on the horizontal axis. o service blueprint o project network diagram o time function map o statistical control chart o flow diagram • Scenario 2 An executive conference center has the theoretical physical ability to handle a maximum of 1 100 participants. However conference management personnel believe that only 1 000 participants can be handled effectively for most events. The last event resulted in the attendance of 950 participants. Referring to Scenario 2 above the efficiency of the conference facility is: o 86.4% o 105.0% o 75.0% o 95.0%
